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i mean, we heard from tim sloan last hour. rates are as low as they are right now and demand is still not maybe what it should be for rate being that low. why do you think that is? >> bill, we're not out of this economic recession yet. i peen, remember, no recession -- housing has led every recession recovery. the refis are helping millions of americans from being underwater in their mortgages. refis are doing a wonderful thing to help this economy. yes, banks make money on them, but we want regular loans. we want loans, regular loans. refis are just a regeneration of old loans. >> so should rates be lower than they are now to spur that kind of demand? that's really my question. >> well, bill, look, they're record lows. let's not forget the regulatory burden. we have a cfpb over there who can't even figure out what a qualified mortgage is. we have a lot of banks getting out of the mortgage business because of the regulatory burden that's being placed on our banks, especially our community banks. >> here's my complaint i have,
i mean, we heard from tim sloan last hour. rates are as low as they are right now and demand is still not maybe what it should be for rate being that low. why do you think that is? >> bill, we're not out of this economic recession yet. i peen, remember, no recession -- housing has led every recession recovery. the refis are helping millions of americans from being underwater in their mortgages. refis are doing a wonderful thing to help this economy. yes, banks make money on them, but we...
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wells fargo's chief financial officer tim sloan joins us first on cnbc so size up the housing market and their quarter for us. tim, good to see you. welcome back. >> hi, bill. how are you? >> doing well. do you agree -- i imagine you do, but to what degree do you see a recovery in housing right now? >> we see a recovery in the housing business, and it's actually pretty strong. we started to see it in the nondistressed portion of the business last year but really beginning in the second quarter we have seen a sustained recovery. we're very optimistic in the housing business. >> can you define housing recovery? it's in the eye of the homeowner if they're very under water. recovery could be very far away if you would just like to see a transaction get done and volume spike in sales. that's a different way. with you say recovery in housing, define it. >> well, i think what we've been seeing in the statistics over the last few months is an improvement in new housing starts, in housing prices, affordability is very strong right now and rates are low. you're right, michelle. it's really in
wells fargo's chief financial officer tim sloan joins us first on cnbc so size up the housing market and their quarter for us. tim, good to see you. welcome back. >> hi, bill. how are you? >> doing well. do you agree -- i imagine you do, but to what degree do you see a recovery in housing right now? >> we see a recovery in the housing business, and it's actually pretty strong. we started to see it in the nondistressed portion of the business last year but really beginning in...
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. >> one comment the cfo at wells fargo tim sloan made comments. he pointed out the economic and interest rate environments continue to present challenges for us in our industry. what do you think about the financials? >> they made less, the net interest margins shrunk. >> and same with jp, that was the set of numbers i got to look at before we started today, is that you're seeing a 10 to 20 basis point deterioration in net interest margin each quarter. we're not at the lows. in 2008 we were around 3% but if the fed stays with current policy as they're suggesting through 2015 we could see net interest margin well below 3%. >> is it possible to even try to group them together in one way and call them the banks? they're so different. >> wells is a much simpler model, less wall street expos e exposure. >> we don't look for trading and bonds. >> no, and you see it in the valuation, whereas there's much more uncertainty with jpmorgan and much less visibility on revenues, we made it with trading again this quarter. you really can't see that as an analyst
. >> one comment the cfo at wells fargo tim sloan made comments. he pointed out the economic and interest rate environments continue to present challenges for us in our industry. what do you think about the financials? >> they made less, the net interest margins shrunk. >> and same with jp, that was the set of numbers i got to look at before we started today, is that you're seeing a 10 to 20 basis point deterioration in net interest margin each quarter. we're not at the lows....
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cfo tim sloan said retaining the mortgages actually generates more income than mbs investments do and expects to retain more mortgages in the fourth quarter. sloan also said he expects the mortgage origination rally to last at least a few more quarters and the q4 mortgage outlook is strong. wells took a big hit to its net interest margins, a problem for all banks across the board as the rates remain low but even if its loan book growing it's not growing fast enough to offset how quickly those rates are falling and what type of income it can actually make on those rates. sloan said that the bank expects continued pressure on those margins, which narrowed 18 basis points in the quarter from a year ago, but that the q3 decline was "not representative of what the bank expects in the future." now, low interest rates outweighing the benefit of the refi boom for sure, an undisputable point this earnings season and a point analysts raised coming into this but didn't predict it to be as bad as it's been. he's focused on returning capital, wells has the highest return on equity but people are w
cfo tim sloan said retaining the mortgages actually generates more income than mbs investments do and expects to retain more mortgages in the fourth quarter. sloan also said he expects the mortgage origination rally to last at least a few more quarters and the q4 mortgage outlook is strong. wells took a big hit to its net interest margins, a problem for all banks across the board as the rates remain low but even if its loan book growing it's not growing fast enough to offset how quickly those...
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you know we need you in treasury we need a very sophisticated sloan crook like you to bail us out and to give us true billions and billions of dollars trillions of dollars you're the only guy who can do it stay in when the secretary of the treasury when you step down but the japanese told the senate we'll take harry and then you'll get the big pay off you'll be up big millionaire player just do the looting for us it's our inside mail and we'll do it and geithner said there's one thing that i want i thought you would have to make sure that it wasn't warren is out i don't want to run i want complete control so there's no law enforcement there's no in take private foresman there's no one thing if we're going to steal we have to do it right i'm paraphrasing the discussion. it's almost like the old hollywood movies of the 1930's you know and the mafia would come to that but no one of their guys is district attorney so that he wouldn't prosecute them ever since alan greenspan was put at it over it's over which they put it the regulator in church it wouldn't prosecute let me jump in for a se
you know we need you in treasury we need a very sophisticated sloan crook like you to bail us out and to give us true billions and billions of dollars trillions of dollars you're the only guy who can do it stay in when the secretary of the treasury when you step down but the japanese told the senate we'll take harry and then you'll get the big pay off you'll be up big millionaire player just do the looting for us it's our inside mail and we'll do it and geithner said there's one thing that i...